The New Corporate Tax Rates FY2020 and onwards

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The Finance Act for FY2020 published in Moroccan Official Gazette No. 6838 bis readjusted the progressive scale of corporate income tax (CIT) rates as follows:

  • Raising the corporate tax rate from 17.5% to 20% for the intermediate net profit bracket from MAD 300,001 to MAD 1,000,000.

Raising the rate of the scale capped at 20% (instead of 17.50%), applied to the net taxable profit greater than MAD 1,000,000 for the following companies:

    • Exporting companies (for more details, please refer to our article New Tax Regime for Exporting Companies“);
    • Hotel companies and tourist entertainment establishments ;
    • Mining companies;
    • Handicraft businesses;
    • Private educational or professional training institutions ;
    • Sports companies;
    • Real estate developers;
    • Agricultural companies ;
    • Companies carrying out services related to outsourcing/offshoring activities whether located inside or outside dedicated platforms for these activities.

Progressive CIT scale before FY2020:

Net Taxable Profit (in MAD) Rates Amount to be deducted
<300.00 10% 0
from 300.001 to 1.000.000 17,5% 22.500
> 1.000.000 31% 157.500

 

New Progressive CIT Scale applicable to fiscal years beginning as from January 2020:

Net Taxable Profit (in MAD) Rates Amount to be deducted
<300.00 10% 0
from 300.001 to 1.000.000 20% 30.000
> 1.000.000 31% 140.000

 

Legal references :

Articles 6 (I-B-3°; I-B-5°; I-D-1°; I-D-3° and I-D-4°); Ar 6 (II-B-4°; II-C-1°-b; II-C-1°-c and II-C-2°) and Ar 19-I-A of the Moroccan Tax Code.

 

Written by Ali SALIM  Manager TAX